The Group of Twenty (G20) is the premier forum for international economic
cooperation. It plays an important role in shaping and strengthening global architecture and
governance on all major international economic issues.
India held the Presidency of the G20 from 1 December 2022 to 30 November 2023.
1999
Inception of G20
The G20 was founded in 1999 after the Asian financial crisis as a forum for the Finance
Ministers and Central Bank Governors to discuss global economic and financial issues.
2008
Elevation to Leader’s Level
The G20 was upgraded to the level of Heads of State/Government in the wake of the global
economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for
international economic cooperation”.
The G20 Summit is held annually, under the leadership of a rotating Presidency. The G20
initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to
inter-alia include trade, sustainable development, health, agriculture, energy, environment,
climate change, and anti-corruption.
2023
Inclusion of AU as G20 Member
India put forth a proposal for the African Union to attain permanent membership status within
the G-20, a proposal that garnered unanimous support from all participating nations. Hence,
the African Union was accepted as a permanent member of the G20.
The G20 Presidency is responsible for bringing together the G20 agenda in consultation with
other members and in response to developments in the global economy.
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G20 Background Brief
G20 Members
The Group of Twenty (G20) comprises 19 countries (Argentina, Australia, Brazil, Canada, China,
France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia,
South Africa, Türkiye, United Kingdom and United States) and two regional bodies: the
European Union and the African Union (as of 2023). The G20 members represent around 85%
of the global GDP, over 75% of the global trade, and about two-thirds of the world population.
Invited International Organisations
In addition to the regular International Organisations
(UN, IMF, WB, WHO, WTO, ILO, FSB and OECD) and Chairs of Regional Organisations
(AU, AUDA-NEPAD and ASEAN), India, as G20 Presidency, will be inviting ISA, CDRI and ADB as
Guest IOs.
How G20 Works
The G20 Presidency steers the G20 agenda for one year and hosts the Summit. The G20
consists of two parallel tracks: the Finance Track and the Sherpa Track. Finance
Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the
Sherpa Track after Finance Track.
The G20 process from the Sherpa side is coordinated by the Sherpas of member
countries, who are personal emissaries of the Leaders. Finance Track is led by Finance
Ministers and Central Bank Governors of the member countries. Within the two tracks,
there are thematically oriented working groups in which representatives from the
relevant ministries of the members as well as from invited/guest countries and various
international organisations participate.
The Finance Track is mainly led by the Ministry of Finance. These working groups meet
regularly throughout the term of each Presidency. The Sherpas oversee negotiations
over the course of the year, discussing agenda items for the Summit and coordinating
the substantive work of the G20.
In addition, there are Engagement Groups which bring together civil societies,
parliamentarians, think tanks, women, youth, labour, businesses and researchers of the
G20 countries.
The Group does not have a permanent secretariat. The Presidency is supported by the
Troika – previous, current and incoming Presidency. During India’s Presidency, the troika
comprised Indonesia, India and Brazil, respectively. During the Brazilian Presidency the
troika will comprise India, Brazil and South Africa.
IN INDIA”S PRESIDENCY G20
India's assumption of the G20 presidency in 2023 provides an opportunity for the country to
influence global policy formulations and discussions. The theme of India's presidency, "One
Earth, One Family, One Future," is inspired by the country's spiritual traditions and aims to
promote sustainable and responsible choices for a greener future, while addressing issues such
as climate change, terrorism, and pandemics India's presidency also focuses on leveraging
digital public infrastructure for financial inclusion and productivity gains, completing the digital
transformation of micro, small, and medium enterprises, and promoting global trust and
capacity building with regard to digital technologies. India believes in preserving policy space to
frame laws and rules to govern digital entities, while also advocating for the adoption of digital
solutions by its domestic entities.
As the current G20 Presidency, India faces challenges due to geopolitical volatility and a
slowdown in the global economy caused by the Covid-19 pandemic. However, India's
Presidency has chosen the theme 'One Earth, One Family, One Future' to link growth
with sustainability and protect the planet. The priorities of the Indian Presidency include
climate change, financing for inclusivity and equitable growth, strengthening Multilateral
Development Banks, and digital public infrastructure. Additionally, to accelerate debt
restructuring efforts, the IMF, World Bank, and India's G20 presidency are convening a new
Global Sovereign Debt Roundtable. India expects China to promote BRICS as a leading global
platform that influences global economic issues and asks for greater role, power, and inclusion
in multilateral finance institutions.
India's participation in the G20 Summit has both merits and demerits for the country.
On the merit side, India's participation in the G20 Summit provides an opportunity to engage
with the world's most influential economies and shape global economic policies. As a major
emerging market, India has a significant role to play in the global economy. The G20 forum
provides India with a platform to present its perspective on a wide range of issues, including
trade, finance, and climate change. India's voice in the G20 can influence the global economic
agenda and promote policies that are beneficial to its economy.
Another merit of India's participation in the G20 is that it can improve the country's
international standing. Being part of the G20 forum provides India with a level of recognition
and legitimacy that is not available to many other countries. India's participation in the G20 can
help it to build stronger relationships with other countries and enhance its global influence.
However, there are also demerits to India's participation in the G20. First, being part of the G20
forum can be expensive for India. The country has to bear the costs of hosting the summit,
which can be substantial. Additionally, participating in the G20 requires significant resources,
including time and manpower, which could be directed towards other pressing issues in the
country.
Another demerit of India's participation in the G20 is that it can lead to increased expectations
from the international community. As a member of the G20, India is expected to play a more
significant role in global economic decision-making. This can create pressure on the country to
perform and deliver results, which may not always be possible given India's domestic
challenges.
In conclusion, India's participation in the G20 summit has both merits and demerits for the
country. While it provides an opportunity to engage with the world's most influential
economies and shape global economic policies, it can also be expensive and create increased
expectations from the international community. Overall, India's participation in the G20 should
be evaluated based on its ability to promote the country's economic interests and enhance its
global influence.
